Partnership Buy/Sell Life Insurance

Partnership Buy/Sell Life Insurance

Have you and your partner talked about business partnership life insurance yet? It’s a rare thing when you can find the perfect match in the business world that leads to a business partnership. When it happens it’s like a door thrown open to business opportunities and success.

With that partnership and success comes a reality that too many businesses overlook or just choose not to think about. What if one of the partners dies unexpectedly? Most successful partnerships are built on the framework of a unique expertise that each partner brings to the table. If one dies prematurely it can be devastating in more ways than just the loss of that expertise.

By law when a partner in a business dies, their portion of the business is inherited by their family. It would be rare indeed for the spouse or child of the deceased partner to move into their position, because that expertise that made you and your partner work so well together is unlikely to exist in their replacement. The option of buying the family out is equally hard to fathom because very few businesses have cash on hand to pay out half or more of the business net worth.

The answer is held in a legally binding partnership buy/sell life insurance agreement. Each partner has a policy on the other. When one dies the surviving partner receives the death benefit and is legally bound to use that money to buy out the family of the deceased partner.

Unless your business is sitting on huge cash reserves, call me and learn more about a partnership buy/sell agreement funded by business life insurance.

More Questions? Check Out Our Blog!

The Hinerman Group knows that every situation is unique and it can be difficult finding the best answers. Be sure to check out our blog where you will find a comprehensive bank of topics covered regarding Life Insurance. The background covered in The Hinerman Group blog will point you in the right direction and help you get your family the coverage you need.

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